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Market confidence may be returning to graphite miner

Market confidence in graphite heavyweight Syrah Resources is returning as the company stops disappointing with operational ‘misses’ and instead delivers ahead of guidance.
Market confidence may be returning to graphite miner Market confidence may be returning to graphite miner Market confidence may be returning to graphite miner Market confidence may be returning to graphite miner Market confidence may be returning to graphite miner

Syrah's Balama office.

Michael Quinn

After 2018 was littered with downgrades from the new Balama operation in Mozambique, Syrah has reported four key first quarter 2019 wins: 48,000 tonnes of graphite production (versus 45,000t guidance); 48,000t sold (versus a range of 45,000-50,000t); an average price at the upper end of guidance, and cash of US$62 million (versus guidance of $55-57 million).
 
While the cash headline was a perhaps a tad overplayed - the "variance to guidance (is) due to timing difference of working capital movements with (about) $5 million (of) payments previously forecasted for quarter one rolling into early quarter two" - the overall trend was clearly positive.
 
Syrah's shares were up about 25% this week at midday Friday, capitalising the company at about $462 million.
 
The stock dipped below $1 per share last month, having spiked to around $6 just over three years ago.
 
Full details of the March quarter are due to be revealed later this month.